Roughly $35 billion in sales will be at risk in 2015 due to patent expiration
Some $1.2 trillion is destined to be spent on
pharmaceuticals in 2016 – up from $956 billion in 2011
Emerging markets continue to mature – which are heavily generic and driven by volumes
Declining sales from existing drugs continue to fuel the development of promising new therapies that show high earning potential. That means plenty of activity for internal R&D - but that source is not likely to be rich enough to survive in the current volatile environment. External R&D and Innovation will continue to play a significant role to help address the innovation deficit. Returns on acquiring a compound with $1.5 Bn of potential peak sales, using contemporary deal terms, have been 4 fold those of discovering and developing the same compound internally.
At the same time, both public and private payers also have grown increasingly reluctant to pay considerably higher prices for the marginal, incremental improvements that characterize many of the new drugs coming to market. Given the increasing shareholder pressure on drug makers to maintain profitability, these factors have had a combined effect on reshaping R&D.
To thrive in this new environment, life sciences companies will have to invest more heavily in genetics and genomics and transform their R&D processes to improve scientific productivity.
How we can help transform your R&D operating model through true process orchestration
We believe an unprecedented level of R&D pipeline management will be required to recapture profitability. Our solutions include:
- Payer Based R&D pipeline assessment Starts with the end in mind - begin with who pays the bills - The process of driving real payer reimbursement criteria into early stage decision making in the presence of imperfect data.
- Innovation Management Promoting portfolio and operating model innovation.
- Process Transformation Reinventing the clinical development process to foster efficiency and effectiveness. With Capgemini’s Enterprise Intelligence services, patients can be identified to enroll in clinical trials based on more sources—for example, social media—than doctors’ visits. Furthermore, the criteria for including patients in a trial could take significantly more factors into account to target specific populations, (for instance, genetic information) thereby enabling trials that are smaller, shorter, less expensive, and more powerful.
- Collaboration Management transforming the R&D model from an internal to a network model.
- Digital Transformation leveraging digital technologies to support transformation objectives across the R&D value chain.
Where to begin - Capgemini’s Accelerated Solution’s Environment
Designed to facilitate disruptive innovation reducing years to days
For over half of Fortune 100 companies, Capgemini’s Accelerated Solutions Environment™ provides a different way of working. This creative workspace combined with a patented facilitation approach allows our clients to solve complex problems, develop a broad set of solution champions and generate momentum